Greenwald Finds Life After Cars

Gerald Greenwald invited us to join him at the dinner table after a Chrysler Corp. new-car preview in Canada several years ago.

The affable Chrysler vice chairman wasn't too talkative, even though Chairman Lee Iacocca was absent, leaving Greenwald to lead the band for at least one evening.

Greenwald seemed pensive, especially after someone at the table--we'll never admit who it was--noted that he was sporting a follicle or two of gray above the eyeglasses resting on his ears.

Finally, it was revealed why Greenwald seemed so distant and out of character. It was his 50th birthday, and he wasn't celebrating.

Instead, he was more focused on what was remaining on his personal "to do" list than on the latest entry in the Chrysler lineup for the coming model year.

So it wasn't surprising when, a few years later, Greenwald, then 54, gave up the Chrysler vice chairman's role and agreed in May 1990 to head the group negotiating an employee buyout of United Airlines and to be chairman and chief executive of UAL Corp., the parent company, after the buyout, which finally occurred in 1994. On Tuesday, he retired from UAL.

Some thought Greenwald's decision unwise, considering he was heir apparent to Iacocca. Wait long enough and he could turn in the second fiddle for the maestro's baton, they figured.

Only after Greenwald left did it become clear that Iacocca wasn't eager to vacate the chairman's office and become a coupon clipper. If Iacocca had his way, he'd still be chairman and Greenwald still would be waiting to move up.

In leaving Chrysler for United, Greenwald said: "I've been offered an opportunity to lead another great company during a period of major transition, and it's an opportunity I can't turn down. At 54 years of age, I want to combine my experience and energy as the chief executive officer of a major corporation."

All Greenwald wanted to do was to come out from under the shadow of Iacocca and prove to the world, and to himself, that he could run a company just like Iacocca could--maybe better.

In an industry that insists only a "car guy" can run a "car company," it was ironic that a "car guy" such as Greenwald would fly the coop for an airline and, in doing so, prove good people make for a good product, regardless of what it is.

Of course, it helped that "car guy" Greenwald also was a financial guru who helped shape Chrysler's plan to seek federal loan guarantees to avoid bankruptcy under Iacocca. And he did it from behind the scenes.

We ran into Greenwald after he toured the Chicago Auto Show this year. Though cars still are part of his culture, he's gotten over the allegiance to Chrysler. The car he admired most was the new Beetle from Volkswagen.

Other than new-found objectivity, what also struck us about Greenwald was an air of baton-wielding confidence.

Greenwald's risk in leaving Chrysler paid off, for him and United, which was in disarray when he took over but has become a more stable and profitable company under him. Greenwald always wanted to run a company. He has done it well and would have done the same had events let him lead Chrysler.

- Now that Renault has acquired a 37 percent interest in Nissan, Ford thinks it's time to part company with Nissan when it comes to building a joint venture mini-van. The Nissan Quest and Mercury Villager mini-vans are built at Ford's Avon Lake, Ohio, plant. The contract calls for production through Dec. 31, 2004, but reportedly Ford would like to end the agreement Dec. 31, 2002.

This would free the plant to produce more Ford vehicles, though it also would give Nissan the opportunity to import a mini-van from Renault so its French partner could re-enter the U.S. market after a lengthy absence. Renault makes the Espace mini-van in Europe, but that would be too small for the U.S., sources say.